Treasury prices dived Wednesday, leading yields to log their largest daily jump since December, after the minutes from the Federal Reserve’s April meeting showed most Fed policy makers were ready to lift interest rates in June, if the economy improved.

The moves were most pronounced in short-term Treasurys, where yields spiked to a 2-month high, as they are most sensitive to changes in the fed-funds rate and tend to jump when rate-hike expectations increase. Treasury yields rise when prices fall and vice versa.

The two-year Treasury yield
TMUBMUSD02Y, +0.16%
gained 7.7 basis points to 0.900%, its highest level since March 15 and its biggest daily jump since Dec. 29, 2015, according to Tradeweb. One basis point is one-hundredth of a percentage point.

Meanwhile, the yield on the 10-year U.S. Treasury note
TMUBMUSD10Y, +0.03%
the Treasury market’s benchmark, jumped 12.3 basis points to 1.882%, its highest level since April 26—the benchmark’s largest one-day spike since Dec. 3, 2015.

The yield on the 30-year bond
TMUBMUSD30Y, -0.04%
known as the long bond, gained 9.9 basis points to 2.686%, hitting its highest level since May 2.

In many ways the U.S. central bank “made a case in the minutes for justifying why it has the ‘right’ to raise rates in June,” said Joe Higgins, a fixed-income portfolio manager at TIAA Global Asset Management.

But policy makers also made it clear that they will be monitoring U.S. economic data, particularly since they deemed global economic conditions as less of a risk than what they thought in previous months, Higgins added.

Still, the news surprised the market which as recently as last week had all but ruled out the possibility of a rate hike in June.

A measure of the dollar’s strength against its main rivals hit a nearly one-month high after the release. And fed-funds futures traders were pricing in a 34% probability of a June rate increase, up from 19% Wednesday morning and significantly higher than 4% on Monday, according to CME Group’s Watch tool. Investors use the fed-funds futures market to bet on the path of rising interest rates.

The selling pressures have pushed yields higher across the board but foreign demand is expected to keep any further increases contained, mainly due to the yield differential between Treasury yields and comparable government bonds in Europe and Japan, analysts said.

On Wednesday, the yield on the 10-year German bond
TMBMKDE-10Y, +0.00%
known as the bund, gained 3.9 basis points to 0.167%.

Another important trend over the past several days is that investors have been selling short-term Treasurys and buying into long-term bonds to prepare for rising interest rates. That trend, known as a flattening yield curve, is often seen when the Fed is about to raise interest rates.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.